$9 Million State Grant Sought for Two LVHN Buildings at Former Martin Tower Site

May 19, 2025

— Jeff Ward, Lehigh Valley News Briefs

Is the need to construct more medical-office buildings so urgent that it’s worthy of $9.075 million of public money?

Bethlehem City Council will decide that Wednesday.

The administration of Mayor J. William Reynolds has proposed that council approve an application for a Redevelopment Assistance Capital Program (RACP) grant for two Lehigh Valley Health Network buildings off Eighth Ave., where Bethlehem Steel Corp.’s Martin Tower headquarters once stood.

The former Martin Tower acreage is a prime opportunity to build in the City of Bethlehem. Rarely does that much land become a blank slate for developers. The plans are for it to be a mix of residential, retail and commercial buildings.

So, why do developers need taxpayers’ money? This was supposed to be a once-in-a-lifetime chance to develop lots of valuable space in the middle of a vibrant, growing city.

Why the money is needed for buildings that are not far from completion is never really explained in the city’s memo asking Council to approve the grant application.

“The Redevelopment Assistance Capital Program (RACP) is a Commonwealth of Pennsylvania grant program for construction projects exceeding $1 million in cost,” according to the city’s request for council’s approval.

“The City typically acts as the pass-through entity of these funds and the projects are carefully monitored by the Commonwealth of Pennsylvania,” the request said.

The request notes an earlier application, now “encompassing a total $9.075 million RACP award,” according to the agenda item for Wednesday’s Council meeting.

From the website of the RACP: The Redevelopment Assistance Capital Program (RACP) is a Commonwealth grant program administered by the Office of the Budget for the design, acquisition, and construction of regional economic, cultural, civic, recreational, and historical improvement projects. 

I’m not sure where these two LVHN buildings fit in to the above, but if money can be had, why not ask? LVHN has Lehigh Valley in its name but it’s part of Jefferson Health of Philadelphia.

Anyway, the buildings are on their way to completion and occupancy in the third quarter of this year. Will the grant pay for costs already incurred?

The resolution on Wednesday’s agenda notes other projects that have benefitted from RACP money: “ArtsQuest Center, Historic Bethlehem Museums & Sites, the City’s parking facilities, Majestic Realty, and the Farr Building. Active RACP projects in the City include the Goodman Building, National Museum of Industrial History’s 2nd Floor expansion, and the LVH- Muhlenberg ICU. The City typically acts as the pass-through entity of these funds and the projects are carefully monitored by the Commonwealth of Pennsylvania.”

I walked by the two buildings that are already going up Thursday. They don’t look impressive. To be fair, they’re not finished but right now they resemble the kind of Hyatt or Marriott that’s found just off a highway exit.

Even today, $9 million is a lot of money. Is the construction of office buildings for a big Philadelphia-based hospital chain anywhere remotely close to the best use of public funds?

Bethlehem City Council will meet at 7 p.m. Wednesday, May 21 in Town Hall. The meeting is open to the public and a link to a webcast is provided on the agenda.

Agendas are subject to change.

The meeting date was moved to Wednesday because Tuesday, Council’s regular meeting day, is Election Day.